It may not happen next week, but it will happen. It appears that Japan is on an unstoppable path to financial Armageddon.
the past 20+ years, the Japanese economy has unwound the excesses
caused by a giant property and financial bubble. At the same time, the
country's aging demographics has increased social costs while the pool
of taxable labor declined. Consequently, Japan has stagnated and
repeatedly dipped into deflation.
This spring, the Bank of Japan
(BofJ) announced insanely aggressive monetary expansion to finally break
the deflationary curse by targeting a 2% inflation rate within 2 years.
Unfortunately, I believe this policy move simply shortens the time
until Japan meets its fate.